UPM Communication Papers plans to permanently close paper machine 6 at UPM Schongau in Germany, reducing the annual capacity of uncoated publication papers by 165,000 tonnes by the end of Q2 2023.
UPM Communication Papers accelerates the earlier announced stop of production at its Steyrermühl mill in Austria by six months. The exit of a total annual capacity of 320,000 tonnes of newsprint will take place already by the end of Q2 2023.
Production on the cost-competitive paper machines 7 and 9 in Schongau as well as on the four other uncoated publication paper machines of UPM in Germany and Finland is planned to continue with a total annual capacity of 1,800,000 tonnes.
The employee consultation process in Schongau is planned to start immediately in line with local legislation. The machine is planned to be closed after the consultation process has been finalized. Would the plan be implemented, the total reduction of personnel at UPM Schongau is estimated at 135.
At the same time, UPM has decided to stop the newsprint production at its Steyrermühl newsprint mill by the end of Q2 2023. UPN plans to ensure competitive production at our remaining newsprint paper machines in Europe. This decision will have no impact on the plans for the Steyrermühl site and its employees as communicated on 21 June 2022. In the case of Steyrermühl UPM will recognize charges of Euro 10 million as items affecting comparability in its Q1 2023 results.
For the planned closure of Schongau PM 6, UPM will recognize restructuring charges of Euro 26 million as items affecting comparability in its Q1 2023 results. The planned actions are estimated to result in annual fixed cost savings of Euro 13 million.
UPM Schongau manufactures graphic papers with the annual capacity of 700,000 tonnes. Located in Bavaria, Germany the mill employs about 490 people.